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STOCK COMPARISON

Home Depot vs McDonald’s: Fair Value & Quality

Both stocks run through our valuation models. Here is how Home Depot (HD) and McDonald’s (MCD) compare, as of Oct 21, 2026.

As of Oct 21, 2026, Fair Value Calculator sees Home Depot as the less overvalued of the two: Home Depot trades at $315 versus a fair value of $237 (−24.9%), while McDonald’s trades at $247 versus $163 (−34.0%).
Home Depot
HD · USD · Consumer Discretionary
−24.9%
upside to fair value
overvalued
Price$315
Fair Value$237
Quality54/100
McDonald’s
MCD · USD · Consumer Discretionary
−34.0%
upside to fair value
overvalued
Price$247
Fair Value$163
Quality69/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

Home DepotMcDonald’s
Valuation
21.9×P/E (TTM)20.0×
19.7×Forward P/E17.9×
23.0×Median P/E at FY-end (10 FY, ex one-offs where documented)25.5×
1.86×P/S (TTM)6.35×
24.52× · book value is mostly goodwillP/BNegative equity
14.6×EV/EBITDA14.4×
2.50×PEG2.06×
−24.9%Fair value upside−34.0%
1.5%Dividend yield3.0%
$4.63Dividend per share$7.35
Profitability
12.9%Operating margin46.5%
0.92×EBIT margin trend (5Y)1.21×
104.3%Return on equityNegative equity
13.5%Return on assets14.4%
Growth
5.7%Revenue growth (YoY)3.7%
1.5%Avg. growth/yr (3Y)5.1%
4.5%Avg. growth/yr (5Y)7.0%
+5.0%Value creation/yr+11.7%
Balance & size
8.7×Interest coverage (EBIT/interest)7.8×
3.62×Debt / equityNegative equity
$314BMarket cap$176B
healthyGrowth qualityhealthy
Home Depot, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2019 ex one-offs: 23. McDonald’s, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 5 of the years ex one-offs: 25.5.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

McDonald’s leads: 3 to 10 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Home Depot McDonald’s
ProfitabilityHow much profit the company makes from its sales and capital
83
64
Quality GrowthAre margins and returns getting better?
30
46
CashflowDo the profits arrive as real cash?
50
76
Financial strengthDebt, balance sheet and risk of trouble
34
53
InvestmentDoes it invest with discipline instead of growing at any price?
48
57
Low VolatilityHow calm the share price moves, does not count
68
95
MomentumPrice trend of the last 3 to 12 months, does not count
27
24
Near the 52-week highDistance to the 52-week high, does not count
24
14
New sharesBuys back shares or issues new ones?
84
88

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyHome DepotPrice $315McDonald’sPrice $247
DCF Models−21.5%below the price$247−35.2%below the price$160
Earnings-Based−59.8%below the price$127−51.1%below the price$121
Dividend Discount−46.7%below the price$168−54.4%below the price$112
Multiples−24.9%below the price$237−16.9%below the price$205
Growth DCF−33.3%below the price$210−62.6%below the price$92.32
Economic Profit−63.4%below the price$115−45.5%below the price$134
Growth Earnings−9.5%close to the price$285−14.9%close to the price$210
Minimum−63.4%below the price$115−62.6%below the price$92.32
Maximum−9.5%close to the price$285−14.9%close to the price$210
Median−33.3%below the price$210−45.5%below the price$134
Geometric mean−40.0%below the price$189−42.4%below the price$142

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Home Depot: 23 of 24 models see the stock below the current price.

McDonald’s: 20 of 21 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Home Depot
Price $315
Fair Value $237
Bear $140Bull $312
McDonald’s
Price $247
Fair Value $163
Bear $91.85Bull $252

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Home Depot · Consumer Discretionary

Quality score54 · above median
Fair value upside−24.9% · below median

McDonald’s · Consumer Discretionary

Quality score69 · Top 25%
Fair value upside−34.0% · below median

Bottom line

As of Oct 21, 2026, Fair Value Calculator sees Home Depot as the less overvalued of the two: Home Depot trades at $315 versus a fair value of $237 (−24.9%), while McDonald’s trades at $247 versus $163 (−34.0%).

McDonald’s has the higher quality score (69/100).

Open Home Depot live analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.